Looking up for Opportunities of

Thailand Food Products in Indonesia

Market

Flora Chrisantie Deputy General Treasurer of APRINDO

• Strategic geographic location and strong global presence

• Total land area Indonesia is around 1.910.931 km² and sea area is around 3.544.744 km² (BPS, Feb2012)

• Second biggest coastline in the world with 104.000 km. (BPS, Feb 2012 ) and +/- 13.000 Islands

• Estimated more than 252.164,800 populations in June 2014 (BPS, 2015).

• The 4th most populous country in the world

Indonesia Fact File…

• Average population growth within 2010-2014: 1,4% (BPS, 2015)

• Dynamic and youthful population (+/- 53% < 29years old) (BPS, 2015)

• 49.75 % Women, 50.25% Man (BPS, 2015)

• 46.7 % living in rural area and 53.3% in urban (prediction in 2015, BPS)

Indonesia Fact File…

Population distribution : Java 56,9%, Sumatera 21,6%, Sulawesi 7,3, Kalimantan 6,0%, Bali /Nusa Tenggara 5,5%, and Maluku/Papua 2,7% (BPS ,2015)

Estimates 30 millions Peoples have strong buying power

56.5% middle class income in 2010 (World Bank report, 2011;

Bank Indonesia)

GINI Index 0.41 (SUSENAS , 2012)

64% of GDP is contributed by domestic consumption which helps Indonesia to buffer external exposure

Average expenditure for food per capita 47.19%, in which 12.46% is contributed by processed food (BPS, Sept 2013)

Indonesia Fact File…

Rice as a main staple food

87% of Indonesian people are Moslem: Hallal & Thoyyiban

Indonesian population consist of 480 ethnics

Abundance of natural resources

Indonesia Fact File…

Trade structure and trends

Create the second largest service based jobs in Indonesia

and the largest contributor for economic growth

• 1.6 % out of 6% economic growth

• 20% of national employment

Create the second largest service based jobs in

Indonesia and the largest contributor

for economic growth

Traditional Retail Market dominate 60% of market

Modern Retail Market grew about 31.4% in 2015

Indonesia Retail Sector

Nielsen Retail Establishment Census : Indonesia store

universe

2.67 million traditional store with almost one million new store built in last decade.

Average 90,000 new store per year (ave. 5% annual growth)

Source: Nielsen Rolling Retail Establishment Survey (RRES)

BANDUNG

GREATER

(WEST JAVA)

3.5%

YOGYAKARTA

GREATER

(CENTRAL JAVA)

1.0%

SEMARANG

GREATER

(CENTRAL JAVA)

2.3%

SURYABAYA

GREATER

(EAST JAVA)

3.1%

MEDAN

(NORTH

SUMATRA)

0.8%

MAKASAR

GREATER

(SULAWASI)

1.2%

STORES BY REGIONS MAJOR

CONTRIBUTORS

WITHIN REGIONS

11% Pop

15% Pop

15% Pop

16% Pop

7% Pop

5% Pop

9% Pop

6% Pop

5% Pop

7% Pop

Traditional store spread is similar to population spread

Electric Cooler 17%

Ice Cream

Cabinet 2%

Refrigerator 29%

Standing

Cabinet 87%

Wholesalers 29%

Self-purchase 85%

Company

Salesmen 21%

Other Stores 10%

Less than 10 57%

11-20 35%

21-40 7%

More than 41 1%

SELLING AREA (IN SQM) HOW ARE THEY SERVICED STORE FACILITIES

Source: Nielsen Rolling Retail Establishment Survey (RRES)

Its basically small stores in residential neighborhood

Residential

Area

Around/

Inside

Market

Main Street

/ Main

Road

Others Small

street/

motor cycle

way

1 way car 2 way car >2 way car

TYPE OF LOCATION TYPE OF STREET

Source: Nielsen Rolling Retail Establishment Survey (RRES)

Its basically small stores in residential neighborhood

Nielsen Retail Index: Trade Channel Contribution | Total 56 Categories – including cigarette | 2014

17.1%

24.9%

Traditional store still the dominant channel

Ave Annual Value growth

6-9%

15%

Nielsen Retail Index: Top General Trade Concentrated Categories | Last 12 Mths

Traditional stores dominate commodity categories

Nielsen Retail Index : Top Modern Trade Concentrated Categories | Last 12 Mths

While modern store dominate modern living categories

Frequency of visiting key trade channels (Times in Month)

Traditional trade is still most frequently visited

Hypermarket 4

Supermarket 5

Minimarket 8

24 Provision

15 Wet market

24 Vegetable

Vendor

Nielsen Shopper trend 2014

Total revenue retail (estimate)

(grocery and non grocery)

2010 2015 2025

Grocery 600 966 2506 Trillion

Non Grocery 293 411 808 Trillion

Total 893 1377 3341 Trillion

Source BPS 2010: Non Grocery : clothing footwear, electronic, appliance, H&B,

Home Garden, Leisure, personal, Mixed, Others

Est 2015 - 2025: Grocery annual growth 10%, Non Grocery Annual growth 7%)

Packaged food continues to enjoy robust value growth…

• Double-digit value growth

• Tendency towards healthier food especially middle- and upper-class &

urban residents

• Wider range of packaged food products frozen processed food, chilled

processed food, dairy products &

meal replacement products,

Thank You